Assessing institutional efficiency, growth and integration

Institutions and Initial Conditions in Transition: Reconciling Neo-Institutional and Neo-Classical Conceptions

“…1 It was partially spurred on by a growing acceptance in the mainstream literature of the neo-institutional economics pioneered by North [1991], Williamson [1985 and others. Much of the later empirical work took institutional factors into account, finding them to be statistically significant, sometimes along with initial conditions [Havrylyshyn, 2001, Campos andCoricelli, 2002], or sometimes not [Bardhan, 2005, Chousa et al, 2005, Grogan and Moers, 2001, Radek and Susjan, 2005. Both Beck and Laeven [2006] and Godoy and Stiglitz [2006] found institutions to be the most relevant of factors affecting performance in transition, with policies including shock therapy being almost irrelevant as a factor in longer term performance.…”

Institutions and Economic Performance: An Overview of Empirical Research with the Main Focus on Transition Economies

“…Instead, Chousa et al (2005a) argue that the best reflection of institutional efficiency/inefficiency may be the shadow economy. The problem with this approach is that levels of grey economy 'acceptable' for different countries may vary.…”

“…Empirical researchers that focus on the role of institutions in explaining economic growth and economic differences among countries include Scully 1988;Moers, 1999;Harvylyshyn et al 2000;Sachs, 2001;Rodrik et al 2002;Asane et al 2003;Gwarntey et al 2004;Chousa et al 2005a and2005b;Redek et al 2005;and Eicher et al 2006. A common characteristic of the conclusions reached by all of these papers is that institutions are an important factor in explaining differences in economic development between countries.…”

Institutional effects on economic performance in post-socialist transition: A dynamic panel analysis

“…Although institutional economists generally recognise institutions as an endogenous factor in economics, some empirical studies do not consider the potential endogeneity problem (in the transition context, this applies to Havrylyshyn -Van Rooden 2003;Redek -Susjan 2005;Chousa et al 2005). Yet Efendic et al (2011a) find that the conclusions of such studies should be treated with great caution because of their potential overestimation of the institutional effect on economic performance.…”

“…1 Redek -Susjan (2005), and Paakkonen (2009) Falcetti et al 2006;Di Tommaso et al 2007;Efendic 2010;Eicher -Schreiber 2010. Chousa et al (2005 base their institutional variable on the shadow economy; Beck -Laeven (2006) use the World Bank Worldwide Governance indicators, while some use specifically designed survey data (e.g.…”